BUYERS GUIDE Residential PV System Cost Breakdown
Residential PV System Cost Breakdown There are various things you need to consider when deciding on a solar electric system for your home. How will the initial cost of the system compare to your longterm investment? Are there any additional benefits to a solar electric system that ll outweigh the cost? In this residential guide, we ll answer all your questions about the cost of PV with scenarios and cost breakdowns. We ll outline exactly what solar electricity is, what you need to know about the systems and the perks that come with them. Photovoltaic Solar Electricity What is a PV System? A photovoltaic (PV) solar electric system converts light from the sun into usable energy for your home. Without getting into the boring atomic process of conversion, PV systems generate power for items in your home that regularly consume electricity, such as lights, TVs, coffee pots, radios, fans, computers and other appliances, up to your entire home. How Does it Work? When PV systems are grouped together, they re called photovoltaic solar cells. These are small, flat plates made of semiconductor materials (typically silicon) composed 2
to capture light in a circuit. The current is then converted into usable energy. Solar cells form powerful systems that increase energy production so much that they can generate anything from four watts to power for an entire block of homes. Types of PV Systems There are two types of PV systems: grid tied and stand alone. Grid tied is the most popular method because it s designed to operate with your utility company. Any power that isn t used is transferred back to the electric company to be used later. This means your home is producing more energy than it s consuming, allowing your meter to run backward. In some cases, you can sell the excess energy back to the electric company. (Talk about serious solar savings!) Stand alone systems are independent of the power grid and use batteries to store energy for later use. This type of PV is excellent for more remote or isolated locations. PV s Rise in Popularity PV systems have become the fastest growing type of solar energy technology in recent years. In addition to the energy efficiency and savings, people are attracted to these solar electric systems because they re incredibly easy to finance. According to studies from Solar Energy Industries Association, the PV sector of the solar industry has grown by 51 percent within the residential segment. Meanwhile prices have gone down 33 percent since 2011. Jargon and statistics aside, PV technology is rising in popularity, while costly, cumbersome electricity is on its way out. Studies show that solar energy will be the world s main source of energy by 2050. PV systems also typically don t require maintenance and they last much longer when compared to traditional energy systems. In fact, the first solar cells created over sixty years ago are still working with little to no wear and tear, despite their long life and steady energy supply. Superior Solar s PV systems are designed to thrive in Florida s climate and come with a 25-year guarantee of optimal production. Read more about PV s added benefits and perks in the next sections, and you ll see more reasons why PV has become increasingly popular over the years. 3
Solar Electric Savings, Costs and Financing Initial Solar Startup Cost The initial cost of a solar electric system varies depending on several factors, like where you buy it from, how many panels you want and the amount of energy you consume per day. The cost for purchasing your system upfront usually varies from $15,000 to $20,000. Like much of the population, you might not have that kind of money laying around, and that s perfectly OK because there s an abundance of affordable financing options that make it easy and affordable to purchase a PV system. Solar Financing While there are numerous methods to finance your system, Superior Solar offers some of the best options in Central Florida that require zero money down to start the installation process. Financing payments can actually be lower than the electricity savings, creating positive cash flow for your budget. There are also many tax credits, incentives and rebates, including a 30 percent Renewable Energy Federal Tax Credit. Solar Savings Now let s talk about energy savings. With photovoltaic solar electricity, you can lower and even eliminate your monthly electricity bill. Your financing loan payment costs less than the electricity you pay. In addition, you receive locked-in financing rates, so the cost isn t affected by inflation and you ll know what cost to expect each month. You re also offsetting post-tax money, making your savings even bigger! To sum up the savings, this financially savvy investment will save you money regularly and free you from dependence on electric energy that can spike in pricing without notice. In terms of real numbers (which is what you ve probably been waiting for), the typical savings over a 20-year period is projected at $20,000 for a small solar electric system. In states with higher populations and higher energy costs, such as 4
Florida, New York and California, the savings can exceed $30,000 over the same 20- year period. When the size of the system is bigger, the savings multiply. Take a look at the residential system cost breakdown below to get a better idea of your payments versus savings. Example of Commercial System Cost Breakdown *Based on 11.4kW system in Central Florida financed by available 5.95% unsecured 240 month loan. $200 $100 Save Money From Day One! Solar Loan Payment Old Electric Bill $0 New Electric Bill Solar Panel Maintenance Costs When it comes to maintaining and cleaning your solar panels, there isn t much work you need to do and there aren t outrageous costs associated with it. Cleaning solar panels is a hassle-free task that can be accomplished in three easy steps. 1. Get a hose. 2. Turn it on. 3. Spray away any small debris. 4. (Or let the rain wash it off instead!) 5
Quick and easy. Of course, there s more that goes into the maintenance of solar panels, but one of the major benefits of solar panel technology is the lack of maintenance required on your part. Manufacturers recommend periodic system checks and cleanings as part of a preventive maintenance routine. These checks and cleanings include regularly clearing away any debris and cleaning the solar panel surfaces exposed to the environment, which should be performed more often if the environment is particularly dirty. And we weren t kidding about the hose before. Usually an ordinary garden hose will be sufficient to clear away debris and clean surfaces exposed to the outside environment. Homeowners should consult their manual for cleaning procedures because safety is always a priority. Increased Property Value Some homeowners are concerned about adopting a PV system because they might decide to move years down the line. You can t take a PV system with you, but solar electric dramatically increases property value for the seller. Structures with solar panels actually sell faster than those without. Recent studies show strong correlation between solar installations and increased market value. In fact, a study by the Lawrence Berkeley National Lab in California states that home buyers are willing to pay a premium of $15,000 for homes with an average-sized PV system (3.6 kilowatts). That s an additional $4 per watt of solar power. Therefore, you can enjoy your investment and be confident in your decision, even when you re ready to sell your home fifteen years later! PV Solar Electric and Your Home The Perks of PV The benefits of utilizing PV in your home are endless. The following are advantages and perks that have convinced people across the world to invest in these solar electric systems for the long-haul. Solar energy is free to consume. Harnessing the sun s energy doesn t cost anything. As previously stated, you can produce more energy than you need and sell it back to the power company. Dropped costs and lower bills. With solar electric systems, you lock-in the costs of your utilities while your neighbors fight to stay cool without overstepping their household budgets. With the monthly bill coming in reliably low (or maybe not 6
at all), installing solar electricity in your home is one of the safest investments you can make. Superior Solar is now able to provide solar PV systems for less than what most people pay for utility-fed electricity. As electricity prices continue to rise, your PV system will continue to supply electricity at today s rates, and the savings will grow. Solar PV systems emit no greenhouse gases. They re great for the environment, reducing your carbon footprint and clearing your conscious of pollution. As a growing industry, solar electricity offers longer warranties and an even longer lifespan. The reliability, simplicity and longevity (with little maintenance) allow you to enjoy the system, with no costly repairs. Although our systems are built to last decades, Superior Solar PV modules come with a 25-year warranty for your financial security and peace of mind. Increased property value of your home when you re ready to sell, even decades down the line. Numerous financing options to make solar photovoltaic electric systems an affordable option for every homeowner, including the 30% Federal tax credit. Solar electric PV panels are quiet and efficient, with no moving parts to operate. Solar panels can easily be placed on an existing roof, or in yards with enough space. Rooftop panels provide shading and cooling for your roof, which further reduces your home s air conditioning demand. Good, quality PV solar systems and panels will last for decades and require little to no maintenance costs. Cleaning the panels is quick and easy, too. Solar panels can provide electricity in remote areas where connecting to the grid isn t possible or would be expensive to do so. As you can see, PV solar electric systems for homeowners is a financially savvy, environmentally friendly and energy efficient decision that anyone can take advantage of. The awe on your guests faces when they see the solar panels on your roof (in addition to how much you re saving) is just icing on the cake. Now that you have the 4-1-1 on photovoltaic solar electricity, it s time to make the solar switch in your home. Contact Superior Solar today to receive a free personal analysis and quote on integrating solar electricity in your house. 7
About Superior Solar The Superior Solar legacy has been trusted by tens of thousands of clients since 1984. Specializing in residential & commercial solar electric, water heating, and pool heating applications, we have grown to become the solar energy leader in the Central Florida community. Our unwavering commitment to quality solar energy solutions and bestin-class service sets us apart. Whether you re harvesting solar energy for your home or for your commercial property, Superior Solar offers only optimal solar solutions to ensure you re saving green -- both in the environment and in your wallet. Tel: 407.331.9077 Fax: 407.331.0305 955 Sunshine Lane Altamonte Springs, FL 32714 State Certified Solar Contractor License #CVC56896 8